Silver markets have pulled back to break down below the $26 level initially during the trading session on Thursday but has seen buyers underneath to turn things around and show signs of life. At this point, the market is likely to see a move back towards the $28 level. At this point time, the market is likely to see significant resistance, but if we were to break above the $28 level, then it is likely that the market goes looking towards the $30 level. All things being equal, I think that does happen eventually, but it is obviously going to be very noisy in general.
SILVER Video 05.03.21
If we do break down below the lows of the trading session, it could open up a move towards the $25 level, which obviously will attract a lot of attention as well. After that, then we have the $24 level which also features the 200 day EMA. That being said, this is very likely going to be a scenario that people are looking for value in a market that is obviously bullish. The longer-term reopening trade should in theory continue to drive up the value of silver and the demand of course. Ultimately, this is a market that I see going higher over the longer term, but that does not necessarily mean that it is going to be straight up in the air. I think that this is a market that you need to be cautious with, and other words you need to keep your position size reasonable as being over levered in this market could be very dangerous as the volatility is legendary.
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This article was originally posted on FX Empire